While establishing labor standards for a Table Game Department is a fairly straight-forward exercise, the entire process requires several steps – Dealer Coverage, Supervisor Coverage, and Tables Required by Game Type will all need to be created in order to produce and accurate overall Department labor standard. This time I will discuss establishing Dealer Coverage requirements, or, calculating a Dealer work-to-table ratio using break schedules.
Most Nevada and East Coast casinos utilize a 60 minute on - 20 minute off Dealer break schedule, a ratio commonly called a 60:20. Essentially, a 60:20 target is the same as covering 12 tables with 16 Dealers, by using this ratio the following standards can be used to calculated the number of Dealer labor hours per open table hour:
Blackjack, Carnival Tables - 1.33 Dealer hours per Table Hour.
Roulette - 1.33 Dealer hours per Table Hour + Racker (Mucker) coverage if Roulette Chippers are not installed.
Craps - Typically 3 X 1.33 (3.99) Dealer hours per open Table Hour + Box coverage if provided by Dealers (normally the Box Person is a Supervisor; however, some jurisdictions allow Dealers to set Box).
Most Midwestern casinos favor an 80 minute on - 20 minute off Dealer break schedule, a strategy which results in a bit more than 6% of increased labor efficiency along with higher Toke Rates for participating Dealers (essentially, using 15 Dealers to cover 12 tables). Using an 80:20 break standard the following ratios can be used to determine required Dealer labor by Table Hour:
Blackjack, Carnival Tables - 1.25 Dealer hours per Table Hour.
Roulette - 1.25 Dealer hours per Table Hour, again, + Racker (Mucker) coverage if required.
Craps - Typically 3 X 1.25 (3.75) Dealer hours per open Table Hour, again, + Box coverage if provided by Dealers.
Specialty games not listed here may require different Dealer coverage per open Table Hour. Establish Baccarat coverage based on game requirements (Mini-Bac versus Full Bac). Also, you may need to factor in fixed Toke Committee labor standards if members of the Committee perform their functions while on the clock.
Poker Dealer break schedules are normally a little different from Table Games targets, I have encountered many combinations or work-to-break ratios while working with different Properties. Determine the work-to-break ratio in use and calculate accordingly (some Card Room Dealers work a 120:30 break schedule, or, a 1.25 factor of required Dealer coverage per open Table Hour). Because in many cases Poker Dealer keep their own Tokes, break schedules can be even more aggressive than Table Games Dealers and at times I have observed the ratios going to 1.20 Dealer Hours per open Table Hour or more.
Multiplying open tables by game type using your break schedule calculations will yield the number of Dealer headcount required to cover. Check your results paying close attention to low-volume hours (particularly at closing), if you see the calculation returning a headcount target value slightly higher than your desired target (due to rounding), then adjust using a maximum Dealer headcount threshold.
Next time we will cover the second component of developing Table Games Labor Standards, that being the calculation of Supervisor Coverage requirements using Break Strings.
Monday, July 20, 2009
Wednesday, July 15, 2009
Labor Management System Philosophy
Here is a link to a short magazine interview I gave several years ago (called Improving Collaboration), my comments here will shed some light on my philosophies regarding the selection of a labor management / labor scheduling system.
From my comments you can take that I feel that there is a cultural "fit" that needs to be respected when selecting a labor management software package. I have in the past worked with Casino operations who quite clearly were attempting to institute software packages whose core design philosophy was at odds with the culture of their organization (with predictably unsuccessful results).
The core design of Labor Management / Labor Scheduling systems generally fall into one of three categories:
1. Rostering Systems. Generally lower in cost and in many cases not suited to entire Property or Enterprise installations, rostering systems can be very comprehensive in the production of daily and weekly employee schedules. In many cases rostering systems work off pre-planned templates which represent forecast demand (in Casinos these are called Spreads), so this type of program is generally less comprehensive in developing labor forecasts and complex labor standards. The specialized rostering system approach has been somewhat successful in the Table Games market.
2. Time and Attendance Systems. Usually developed in the school of "better labor management through clock management" thinking, these systems are notable for their interface capabilities to time clock systems. By the way, it is generally the sale of time clock systems that purveyors of these systems crave, for that reason there has been in the past less of a commitment to consistently developing and supporting the labor management aspects of these programs. One big advantage of these systems is the somewhat forced usage by operational departments, because one thing is for sure, Operations has to edit time clock records on an on-going basis. Look for a track record of installation success with these types of systems because all of the time clock companies seem to be jumping into the market now.
3. Resource Management Systems. Typically skewed to the fiscal aspects of labor management, resource management systems are typically the most comprehensive in allowing complex labor standards to be configured and reported, and generally have the most built-in volume forecasting tools. Scheduling tools run the gamut from rudimentary to very comprehensive. The best of this breed also has built in budgeting modules, although in most cases the Casino Industry has favored the Excel Add-In approach with budgeting software. Again, look for a good track record of installation success with these type of systems, in many cases, the companies designing / developing in this area are in the market for consulting fees (so initial costs may be higher than with a straight software purchase).
There are many competing labor management / labor scheduling products on the market, understanding the core design values of each will help when making the proper selection for your organization's needs.
From my comments you can take that I feel that there is a cultural "fit" that needs to be respected when selecting a labor management software package. I have in the past worked with Casino operations who quite clearly were attempting to institute software packages whose core design philosophy was at odds with the culture of their organization (with predictably unsuccessful results).
The core design of Labor Management / Labor Scheduling systems generally fall into one of three categories:
1. Rostering Systems. Generally lower in cost and in many cases not suited to entire Property or Enterprise installations, rostering systems can be very comprehensive in the production of daily and weekly employee schedules. In many cases rostering systems work off pre-planned templates which represent forecast demand (in Casinos these are called Spreads), so this type of program is generally less comprehensive in developing labor forecasts and complex labor standards. The specialized rostering system approach has been somewhat successful in the Table Games market.
2. Time and Attendance Systems. Usually developed in the school of "better labor management through clock management" thinking, these systems are notable for their interface capabilities to time clock systems. By the way, it is generally the sale of time clock systems that purveyors of these systems crave, for that reason there has been in the past less of a commitment to consistently developing and supporting the labor management aspects of these programs. One big advantage of these systems is the somewhat forced usage by operational departments, because one thing is for sure, Operations has to edit time clock records on an on-going basis. Look for a track record of installation success with these types of systems because all of the time clock companies seem to be jumping into the market now.
3. Resource Management Systems. Typically skewed to the fiscal aspects of labor management, resource management systems are typically the most comprehensive in allowing complex labor standards to be configured and reported, and generally have the most built-in volume forecasting tools. Scheduling tools run the gamut from rudimentary to very comprehensive. The best of this breed also has built in budgeting modules, although in most cases the Casino Industry has favored the Excel Add-In approach with budgeting software. Again, look for a good track record of installation success with these type of systems, in many cases, the companies designing / developing in this area are in the market for consulting fees (so initial costs may be higher than with a straight software purchase).
There are many competing labor management / labor scheduling products on the market, understanding the core design values of each will help when making the proper selection for your organization's needs.
Friday, July 10, 2009
Understanding FTEs
One of the first things I do when I work with someone new in a Casino or Hotel is to ask them what an FTE is, and - don't laugh - more often than not what I hear in response is "an FTE is a Full Time Employee."
Now in the labor management game we all know that the term FTE stands for Full Time Equivalent, but it never hurts to ask just to make sure everyone is on the same page. I recently worked with a hospitality group whose senior leadership had for years conducted detailed FTE reviews with their line operators; imagine their surprise when it was pointed out that many in their organization did not know what the term FTE actually meant!
For reference, the Government's definition of the term FTE is available at the National Parks Service Budget Glossary.
Even more interesting is when I hear or see the term Daily FTE. As an FTE exists only in a minimum of 40 worked hours (anything time period less would essentially represent either shifts or headcount), be especially careful when you encounter this concept, the user is probably using a daily Salary calculation to return the result.
I like to compose FTEs with Regular (worked), Hours plus Overtime Hours, in this way I can offset the Actual FTEs with Forecast, Scheduled, or Standard FTEs and have the labor effectiveness reporting become meaningful. I have, however, worked with Properties who include certain types of Training Hours in their FTE calculations, and, at times, I have seen Property Finance Departments include other benefit hours into the calculation (typically this happens on Daily Operating Reports).
Moral of the story - take the time to ask, do not always assume you are on the same page as your audience.
Now in the labor management game we all know that the term FTE stands for Full Time Equivalent, but it never hurts to ask just to make sure everyone is on the same page. I recently worked with a hospitality group whose senior leadership had for years conducted detailed FTE reviews with their line operators; imagine their surprise when it was pointed out that many in their organization did not know what the term FTE actually meant!
For reference, the Government's definition of the term FTE is available at the National Parks Service Budget Glossary.
Even more interesting is when I hear or see the term Daily FTE. As an FTE exists only in a minimum of 40 worked hours (anything time period less would essentially represent either shifts or headcount), be especially careful when you encounter this concept, the user is probably using a daily Salary calculation to return the result.
I like to compose FTEs with Regular (worked), Hours plus Overtime Hours, in this way I can offset the Actual FTEs with Forecast, Scheduled, or Standard FTEs and have the labor effectiveness reporting become meaningful. I have, however, worked with Properties who include certain types of Training Hours in their FTE calculations, and, at times, I have seen Property Finance Departments include other benefit hours into the calculation (typically this happens on Daily Operating Reports).
Moral of the story - take the time to ask, do not always assume you are on the same page as your audience.
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